Home » Kroger Fulfillment Network to invest over $550,000 for new distribution center in Boone County

Kroger Fulfillment Network to invest over $550,000 for new distribution center in Boone County

BOONE COUNTY, Ky. — Kroger Fulfillment Network, a wholly owned subsidiary of The Kroger Co., announced it would locate a new distribution center, also known as a spoke or cross-docking facility, in Boone County, investing over $550,000 and creating 98 full-time, Kentucky jobs.

The new spoke facility will help expand Kroger’s e-commerce reach in Kentucky. This new facility will support the customer fulfillment center in Monroe, Ohio, by extending customers’ access to affordable, healthy and fresh foods. To support the operation, the company will locate the facility in a 2,000-square-foot portion of an existing Boone County building and create 98 quality jobs for Kentucky residents.

“We are thrilled to have our Northern Kentucky spoke facility considered for the Kentucky Business Investment program (KBI) and extend our deepest gratitude to the KEDFA staff for their support. The KBI underscores Kentucky’s pro-business climate and will allow for workforce growth and development in the Northern Kentucky area,” said Ben Hamilton, vice president of Logistics and Network Strategy at Kroger Delivery. “We are passionate about delivering a fresh, convenient customer shopping experience. This expansion will mean lower prices and more choices for more people across Kentucky. Like their in-store experience, customers can access personalized digital coupons, valuable fuel points, and the fresh, high-quality products they need, want and love.”

Kroger maintains 112 stores in Kentucky, employing more than 19,000 associates. The Commonwealth is also home to four manufacturing and distribution facilities that service the company and a regional headquarters in Louisville. Since 1987, Kroger’s floral designers have created the famous Kentucky Derby Garland of Roses. In 2017, Kroger and the University of Kentucky entered a 12-year marketing agreement that renamed the university’s football stadium to Kroger Field.

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) last Thursday preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $550,000 in tax incentives based on the company’s investment of $554,000 and annual targets of:

  • Creation and maintenance of 98 Kentucky-resident, full-time jobs across 10 years; and
  • Paying an average hourly wage of $24.28, including benefits across those jobs.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

In addition, Kroger can receive resources from Kentucky’s workforce service providers. Those include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

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